New Asia Holdings Reports Significant Financial Developments and Acquisition of Olenox Corp.

New Asia Holdings, Inc. (NAHD) reported significant financial developments in its 10-Q filing for the period ending June 30, 2024. The company experienced a notable increase in total current assets, rising to $19.8 million from $15.6 million as of December 31, 2023. Total assets also grew to $20.0 million, up from $15.8 million in the previous period. However, total current liabilities increased to $1.5 million from $1.4 million, resulting in a total stockholders' deficit of $(1.5 million), compared to $(1.3 million) at the end of 2023.

For the three months ended June 30, 2024, New Asia Holdings reported no revenue, consistent with the same period in 2023. Operating expenses surged to $70.8 million, compared to $45.1 million in the prior year. This increase was attributed to higher professional fees and outside service expenses. Consequently, the company recorded a net loss of $(70.8 million) for the quarter, compared to a net loss of $(45.1 million) in the same quarter of 2023. For the six-month period, the net loss also widened to $(110.9 million) from $(102.2 million) year-over-year.

The company’s cash position deteriorated, with cash at the end of the period reported at $13.4 million, down from $23.4 million a year earlier. The net cash provided by financing activities increased to $64.0 million from $50.5 million, indicating reliance on external funding to support operations.

Strategically, New Asia Holdings completed the acquisition of Olenox Corp. on July 15, 2024, issuing 224.3 million shares of common stock. This acquisition marks a shift in the company’s focus towards becoming a diversified energy company operating in Texas, with business units in Oil and Gas, Energy Services, and Energy Technologies. The company also dissolved its subsidiary, Magdallen Quant Pte Ltd, in February 2023, following poor performance of its trading algorithms.

As of June 30, 2024, the company had an unsecured interest-free loan of $1.1 million from its principal shareholder, Lin Kok Peng, which was subsequently cancelled following the Olenox acquisition. The company continues to face challenges, including recurring losses and a working capital deficit, raising doubts about its ability to continue as a going concern. The independent auditors have noted these concerns, which may affect future financing opportunities.